China Automotive Systems New Joint Venture Steers The Company In The Right Direction

Posted on by John Sheehy

China Automotive Systems (CAAS) disclosed via 8-k filing that it would contribute its existing Electronic Power Steering (EPS) business to a newly formed Joint Venture with KYB Corporation, a major Japanese producer of auto parts. CAAS has not issued a press release or made any public comments about the transaction.  KYB provided this explanation: Key … Continue reading China Automotive Systems New Joint Venture Steers The Company In The Right Direction

China Automotive Systems $5.45 Buyout Price May Be Fair

Posted on by John Sheehy

Note: Chairman Chen withdrew his buyout offer in August 2018 (LINK) Last May China Automotive Systems (CAAS) received a buyout offer of $5.45/share from its Chairman Hanlin Chen The Special Committee of the company's independent directors hired advisors and Morgan Stanley's private equity arm joined the Buyer Group, but there has been no other update. … Continue reading China Automotive Systems $5.45 Buyout Price May Be Fair

Performance of Chinese ADRs After Withdrawn Buyout Offers

Posted on by John Sheehy

Management buyout offers are made at a time chosen by insiders and when they may have valuable non-public information about a company's future potential.  Shareholders in companies with currently pending buyout offers (such as China Automotive Systems and China XD Plastics) should consider that some past offers that did not close were followed by significant … Continue reading Performance of Chinese ADRs After Withdrawn Buyout Offers

China Automotive Systems Buyout Price Should be Raised to at least $7.50

Posted on by John Sheehy

China Automotive Systems, a major supplier of steering gear to the Chinese auto industry, received a buyout offer of $5.45/share from Chairman Hanlin Chen.  (LINK) The offer values the company at 7.8X reported 2016 earnings and just 0.6X 12/31 book value, multiples well below comparable companies trading in Hong Kong and China Increasing technological sophistication … Continue reading China Automotive Systems Buyout Price Should be Raised to at least $7.50